Market Integration

Definition ∞ Market integration refers to the process by which different markets become more interconnected and interdependent. In the context of digital assets, this can involve the convergence of traditional financial markets with cryptocurrency markets, or the seamless interaction between various blockchain ecosystems. It suggests a reduction in barriers to trade and capital flow.
Context ∞ The notion of market integration is a recurring theme in analyses of digital asset adoption and the broader financial system. News coverage often examines the correlation between Bitcoin prices and traditional stock market indices, the increasing involvement of institutional investors, and the development of regulated financial products tied to digital assets. Discussions frequently address the implications of this integration for market volatility, systemic risk, and the potential for new investment opportunities.